Taxes on Winnings (buy, casinos, income)

SoCalCpl2 · 10-22-2012, 10:57 PM

Does anyone know the threshold for taking taxes out of your winnings?? And does it have to be a single amount or do they do it if you have a bunch of smaller amounts that add up to the large amount that can be taxed???

For example, I win $5000 on a single slot machine... I know I will be taxed...(at least I think)

Or I win $5000 on about 20 different slot machines and have 20 different amounts that add up to $5000..Will they tax this???

VegasGhost · 10-23-2012, 12:29 AM

I don't know the threshold, but I have had a friend who won several hundred dollars (not thousands) on a slot and they still had to sign a form for tax purposes, so take that however you want.

NLVgal · 10-23-2012, 05:06 AM

I don't know the threshold, but I know that if you keep track (documentation) of your gambling losses on an itemized return, you can offset your winnings up to that amount.

ischyros · 10-23-2012, 06:26 AM

Typically on slot machines, the magic number is $1200 and the casino is required to withhold 25% for taxes and make you sign an IRS form. I believe this is a one time cash out. So if you cash out and it all adds up to more than $1200, they will take the tax out. If you cash out between winnings without it totaling $1200, they won't withhold the tax. I'm not an expert, but I believe this is the case. And like NLVgal said, you can claim gambling losses on an itemized tax form up to your winnings if you keep track of your losses. Other things are taxed different. I don't think table game winnings are taxed at the casino at all. I think in horse racing the limit is $500 or $600. Otherwise, I think sports books you are taxed if the odds are 300-1 or higher. Just keep track of your losses and you may get most of that tax back.

And you do know that even if the casino doesn't tax your winnings, technically you're still supposed to report it on your income tax form, right? I'm sure everyone follows this rule. :-)

BBMW · 10-23-2012, 08:50 AM

Theoretically you're taxed on winnings from dollar 1. But you're supposed to voluntarily report. The casinos don't have to report jackpots until they reach $1200.

If you're playing table games, where you can buy in and cash out for any amount at any time, they don't report winnings. However when cash transactions reach a certain point ($10,000) the casinos will report them. Also, if you're performing cash transactions that fit the definition of looking suspicious (money laundering), they have to report them.

airics · 10-23-2012, 10:20 AM

Quote:

Originally Posted by BBMW

Theoretically you're taxed on winnings from dollar 1. But you're supposed to voluntarily report. The casinos don't have to report jackpots until they reach $1200.

If you're playing table games, where you can buy in and cash out for any amount at any time, they don't report winnings. However when cash transactions reach a certain point ($10,000) the casinos will report them. Also, if you're performing cash transactions that fit the definition of looking suspicious (money laundering), they have to report them.

anything over 1,000, you're flagged by the cage to keep an eye on the transactions..... at 3,000 id is required.. at 10,000 you're reported.... if you bring 5k at 10am, 3k at 12pm, and 2k at 2pm, you are still reported.

Darthfrodo · 10-23-2012, 10:30 AM

The limit is $1200. But I believe that has to be one transaction. I hit a royal last week and cashed out for $1125. They didn't bat an eye.

Technically you are to keep track of all of your winnings and losses and report any income to the IRS.

SoCalCpl2 · 10-23-2012, 02:42 PM

Ok thanks... That makes sense that if the amount was over $1200 no matter if it was smaller ones together you would be taxed....

Yeah I know about the loss versus wins for taxes and yes I most certainly let the IRS know about each and every dollar I win

orca17 · 10-23-2012, 04:45 PM

You only fill out the IRS form if you have a single ticket for $1,200 or more. That is why you see some dollar slots with a top jackpot of $1,199 - a dollar below the threshold of taxation.

Packrat1 · 10-23-2012, 07:41 PM

As long as you have a valid Social Security Card and Driver's License or similar ID in hand, you don't have to have them take out taxes at least not in Nevada. Even if it is over $1200. You can if you like, but is not required. Playing video poker those thresholds are reached at 50cent and dollar levels for a Royal Flushes ie $2K, or $4K.